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A BILL TO BE ENTITLED
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AN ACT
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relating to an increase in the state sales and use tax rate for the |
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purpose of reducing school district maintenance and operations ad |
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valorem taxes and a study of additional changes to the rate and |
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application of the state sales and use tax for that same purpose; |
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increasing the rate of a tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 151.051(b), Tax Code, is amended to read |
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as follows: |
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(b) The sales tax rate is 10.25 [6-1/4] percent of the sales |
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price of the taxable item sold. |
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SECTION 2. Subchapter M, Chapter 151, Tax Code, is amended |
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by adding Section 151.803 to read as follows: |
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Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL |
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DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801, |
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the comptroller shall deposit an amount of revenue equal to the |
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proceeds derived from the collection of taxes imposed by this |
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chapter attributable to the portion of the tax rate in excess of |
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6.25 percent of the sales price of the taxable item sold to the |
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credit of the property tax relief fund. Money credited to the fund |
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under this section may be appropriated only to reduce school |
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district maintenance and operations ad valorem tax rates in a |
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manner consistent with Section 403.109, Government Code. |
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SECTION 3. (a) The comptroller of public accounts shall |
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study the rate of, and the exemptions, discounts, exclusions, |
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credits, and special reporting methods applicable to, the state |
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sales and use tax for the purpose of identifying alternative |
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sources of funding for public primary and secondary education in |
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this state other than local property taxes. |
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(b) In the study, the comptroller must: |
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(1) determine the intended purpose of each exemption, |
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discount, exclusion, credit, or special reporting method and |
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evaluate whether the exemption, discount, exclusion, credit, or |
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special reporting method achieves that purpose; |
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(2) evaluate the effect of each exemption, discount, |
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exclusion, credit, or special reporting method on state revenue; |
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and |
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(3) evaluate the rate at which the state sales and use |
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tax would need to be imposed to fully fund the cost of public |
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primary and secondary education in this state if: |
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(A) each exemption, discount, exclusion, credit, |
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or special reporting method identified by the comptroller as |
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underperforming were repealed; and |
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(B) school district maintenance and operations |
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ad valorem taxes were abolished. |
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(c) Not later than November 1, 2020, the comptroller shall |
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prepare and deliver to the governor, the lieutenant governor, and |
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each member of the legislature a report of the findings of the |
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study. |
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(d) This section expires January 1, 2021. |
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SECTION 4. This Act takes effect October 1, 2019. |